Industrial Training Act 1982

11 Levies.E+W+S

(1)An industrial training board may from time to time, submit to the [F1Secretary of State] proposals (in this Act referred to as “levy proposals”) for the raising and collection of a levy to be imposed for the purpose of raising money towards meeting the board’s expenses . . . F2

(2)The levy shall be imposed in accordance with an order made by the Secretary of State (in this Act referred to as “a levy order”) which shall give effect to levy proposals [F3submitted to him] under subsection (1) above and shall provide for the levy to be imposed on employers in the industry, except in so far as they are exempted from it by the industrial training order, the levy order or an exemption certificate; but nothing in this Act shall be construed as requiring the Secretary of State to make a levy order in a case in which he considers it inexpedient to make one.

[F4(2A) Levy proposals must provide for one or more periods (in this Act referred to as “ levy periods ”) by reference to which a person's liability to levy is to be established and the levy period or periods must fall within the period of three years beginning with the day on which the levy order giving effect to the proposals is made.

Levy proposals may not provide for more than three levy periods.

(2B)Subsection (2A) above is subject to subsections (2C) and (2D) below.

(2C)If the levy order giving effect to levy proposals submitted by an industrial training board would be the first or second levy order giving effect to proposals submitted by the board, the proposals may instead provide for a single levy period that falls within the period of one year starting with the day on which the levy order giving effect to the proposals is made.

(2D)No levy order may be made in reliance upon subsection (6)(b) below unless the proposals in pursuance of which the order would be made provide for a single levy period that falls within the period of one year starting with the day on which the levy order giving effect to the proposals is made.

(2E) Levy proposals must specify, for each levy period, a period (in this Act referred to as a “ base period ”) by reference to which the relevant emoluments are to be calculated. ]

(3)Levy proposals must include [F5, in relation to each levy period,]proposals for exempting from the levy [F6payable in respect of that levy period ]any employer who, in view of the small number of his employees, ought in the opinion of the board to be exempted and the Secretary of State shall not make a levy order in pursuance of levy proposals unless they provide[F7, in relation to each levy period, ]for the exemption of employers who, in view of the small number of their employees, ought in his opinion to be exempted.

(4)Subject to subsection (5) below, levy proposals may include[F8, in relation to any levy period,] proposals for securing—

(a)that any exemption certificates issued by the board shall not exempt from the whole or a portion of the levy[F9payable in respect of that levy period] the employers or some of the employers in the industry, or

(b)that no exemption certificates shall be issued by the board;

and the Secretary of State shall not make a levy order in pursuance of any levy proposals unless he is satisfied that [F10proposals published by the board]under section 13(5) below provide for exemption certificates relating to levy (other than that payable by virtue of this subsection) in such cases as he considers appropriate.

(5)If, as a result of such levy proposals as are mentioned in subsection (4) above—

(a)in a case within paragraph (a) of that subsection, the amount of the levy[F11payable in respect of a levy period ] from which an exemption certificate will not exempt any person will exceed 0·2 per cent. of the relevant emoluments[F12in respect of the base period for that levy period ]; or

(b)in a case within paragraph (b) of that subsection, the amount of the levy payable by any person[F13 in respect of a levy period] will exceed that percentage of the relevant emoluments,[F14in respect of the base period for that levy period]

then the [F15Secretary of State shall not make a levy order in pursuance of the levy proposals unless he is satisfied that they are necessary to encourage adequate training in the industry] and one of the conditions mentioned in subsection (6) below is satisfied.

(6)The conditions referred to in subsection (5) above are—

[F16(a)that the Secretary of State is satisfied that—

(i)the board has taken reasonable steps to ascertain the views of persons who the Secretary of State considers are likely to be liable to make payments by way of levy in consequence of the levy proposals, and

(ii)a class of persons, who together satisfy the requirements in subsection (6A) below, considers that the proposals are necessary to encourage adequate training in the industry;]

[F17(b)that the order will be made—

(i) after the making of a levy order (“ the earlier levy order ”) in respect of which the Secretary of State was satisfied that the condition in paragraph (a) above applied, and

(ii)within the period described in subsection (6E) below,

and the condition in subsection (6F) or (6G) below is satisfied;]

(c)that neither of the conditions mentioned in paragraphs (a) and (b) above applies but the proposals are considered by the Secretary of State to be appropriate in the circumstances.

[F18(6A)The requirements referred to in subsection (6)(a) above are that—

(a)the class must consist of more than half of those persons who the Secretary of State considers are likely to be liable to make payments by way of levy in consequence of the levy proposals; and

(b)the class must include such persons as the Secretary of State considers are together likely to be liable to make payments by way of levy in consequence of the levy proposals which amount to more than half the aggregate amount of those payments.]

[F19(6B) The Secretary of State may by regulations make provision as to what constitutes “ reasonable steps ” for the purposes of subsection (6)(a) above.

(6C)Regulations under subsection (6B) above may include—

(a)provision for ascertaining the views of persons with respect to levy proposals by means of a sample of those persons;

(b)provision for treating a person who is represented by an organisation of such description as may be prescribed by the regulations as having the same view as the organisation with respect to levy proposals.

(6D)Regulations under subsection (6B) above shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.]

[F20(6E)The period mentioned in subsection (6)(b)(ii) above is—

(a)if the earlier levy order provides for such levy periods as are referred to in subsection (2A) above, the period beginning with the third anniversary and ending with the fourth anniversary of the making of the earlier levy order;

(b)if the earlier levy order provides for such levy period as is referred to in subsection (2C) above, the period beginning with the first anniversary and ending with the second anniversary of the making of the earlier levy order.

(6F)The condition in this subsection is that the proposals relating to the earlier levy order included proposals for securing—

(a)that no exemption certificates should be issued; or

(b)that the exemption certificates to be issued should not exempt employers from any of the levy payable in respect of any levy period.

(6G)The condition in this subsection is that—

(a)the proposals in pursuance of which the earlier levy order was made included proposals for securing that exemption certificates should not exempt employers from a portion of the levy payable in respect of a levy period; and

(b)the percentage of the relevant emoluments from which under the current proposals the exemption certificates will not exempt any person will not exceed the percentage of the relevant emoluments in respect of any of the base periods specified in the earlier levy order from which that person was not exempted under that order.]

(7)The Secretary of State shall not make a levy order in pursuance of any levy proposals unless the amount [F21of levy payable in respect of each levy period ]which, disregarding any exemption, he estimates would, if the order were made, be payable by virtue of it by any employer in the industry either—

(a)does not exceed an amount which the Secretary of State estimates is equal to one per cent. of the relevant emoluments[F22 in respect of the base period for that levy period], or

(b)does exceed the amount mentioned in paragraph (a) above but is considered by him to be appropriate in the circumstances.

(8)In this section—

• “the relevant emoluments” in relation to any person means the aggregate of the emoluments and payments intended to be disbursed as emoluments which are paid and payable by him to or in respect of persons employed in the industry in respect of [F23a period specified in levy proposals as a base period.]

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